Home Capital Investing strategies

Part 1: Growing income-wealth inequality and conventional solutions

Tong Kooi Ong
Tong Kooi Ong8/20/2018 07:30 AM GMT+08  • 5 min read
Part 1: Growing income-wealth inequality and conventional solutions
SINGAPORE (Aug  20): I wrote about the growing empirical evidence of declining income mobility some weeks back. Few would dispute that this is happening, in both the developed and developing worlds. There may be more debate over the reasons behind this
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Aug 20): I wrote about the growing empirical evidence of declining income mobility some weeks back. Few would dispute that this is happening, in both the developed and developing worlds. There may be more debate over the reasons behind this phenomenon but the un­equal distribution of income growth and wealth inequality are, without doubt, the key factors.

Economic inequality has risen rapidly, especially in the past decade, perpetuated by digitalisation of economies and, perhaps unwittingly, by central bank policies in the aftermath of the global financial crisis.

Digitalisation and technology have been especially disruptive for small businesses while favouring larger and larger corporates. Last week, I talked about the inevitable monopolisation of the economy by technology giants. This concentration of bargaining power has kept worker wages stagnant even as top manage­ment and shareholders reap ever-higher salaries and profits.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now